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Antecedents to value diminution: A dyadic perspective

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Marketing Theory

Published online on

Abstract

The purpose of this article is to identify the antecedents of diminished value in business-to-business exchange. There is only a limited amount of research on value destruction in the context of service-dominant (S-D) logic and, to the best of our knowledge, no dyadic studies. From a business perspective, awareness of factors that have the potential to impede value creation will enable relationship partners to increase mutual value realization. The article examines the accuracy of the term ‘value co-destruction’ as a blanket description for interaction that results in value reduction, and proposes that, in many instances, ‘value diminution’ may be more appropriate. The study adopts an exploratory, qualitative approach. One-to-one interviews are conducted with clients and their creative agencies. The results suggest that diminished value outcomes are caused by resource deficiencies and resource misuse by both relational partners, separately and jointly. We propose a model of five higher-order antecedents of value diminution: absence of trust, inadequate communication, power/dependence imbalance, inadequate coordination and inadequate human capital.